Music Piracy and Artists, Consumers and Record Companies
With the advent of peer to peer programs such as Napster during the late 1990’s which made searching and downloading music as simple as a few clicks on the mouse, music piracy has been at an all time high. According to statistics from RIAA – The Recording Industry Association of America the leading agency in anti-piracy efforts, 1999 represented the peak in the overall size of the U.S. sound recording industry at $145,845,000,000. In all subsequent years the total value declined to reach its latest figure in 2007 of $103,227,000,000. (RIAA, “2007 Consumer Profile”). The RIAA has been working hard to protect the record recording industry and all the artists, songwriters, musicians and record label employees within the industry. (RIAA, “Online and On The Street” par. 1) The RIAA’s main focus is to reduce the widespread ‘music theft’ through illegal uploads and downloads and stop companies which produce counterfeit CDs. (RIAA, “Online...” par. 2) Statistics by the Institute for Policy Innovation conclude that “global music piracy causes $12.5 billion of economic losses every year.” (RIAA, “Online...” par. 3) These losses include loss of jobs; loss in tax revenues and loss in corporate income (RIAA, “Online...” par. 3). Consumers justify their downloading habits by a few points: firstly, they claim that the price of a music CD is unfair in comparison to the quality of the music they are perceived to be receiving. Secondly, consumers are outraged that they must purchase a full CD only to receive a few hit singles and mostly ‘filler’ songs. Finally, consumers also turned to free peer to peer services because limited or otherwise hard to find items were now easily available. Another argument that consumers used was that if they owned the original work in cassette, CD or LP form, they should have the right to own a digital copy which will not physically degrade over time and continuous use. (Wikipedia, “Napster”, par. 3)
Record companies claim they are losing millions of dollars in annual sales of CDs and that piracy has made a huge dent in the pockets of artists. Record companies and artists alike have been trying hard to educate the consumers the harms of pirating music and relate pirating to stealing. (RIAA, “For Students Doing Reports” par. 4) The RIAA breaks down pirating into two main categories: street piracy and online piracy. Street piracy is defined as the manufacturing and sale of counterfeit CDs. Online piracy encompasses all digital file sharing and file swapping. (RIAA, “For Students...” par. 6) As mentioned earlier, the RIAA cites the Institute for Policy Innovation in the statistic that global music piracy costs the economy $12.5 billion dollars in losses. Without record companies and artists receiving proper royalties on their creative works, they are not financially able to continue producing music. Rightly so, music artists deserve to be compensated for their effort and creativity and risk they took in endeavouring into the music industry. While music pirating may seem as a victimless crime it is actually hurting many people. (MusicUnited, “Why You Shouldn’t Do It”, Par. 13) Popular artist and multi-platinum award winning artist DMX says the following on piracy:
"It was a rough road but I made it. I got to where I wanted to be. And, part of being where I want to be is getting paid for my work. But, when you download songs off the Internet it’s stealing. It’s taking away from those 19 years of writing, it’s taking away from those 19 years of struggling. Because straight up and down it’s stealing. My fans, my real fans, they got love for me. [It]’s stopping new artists from getting where they need to be. It’s killing the industry as we know it. Stop stealing. Go in the store and buy like everybody else." (MusicUnited, “What Artists Have To Say”)
Since the past few years the RIAA has resorted to slapping individuals with hefty lawsuits in order to try and deter individuals from illegally pirating music. According to the RIAA the lawsuits are trying to send the message that individuals must be held accountable for their illegal activities. Because illegally downloading music is simple and individuals have largely done it undetected the RIAA has decided to use the Copyright act and the law to try and let pirates know that it isn’t undetectable and they will be held accountable for their actions. (RIAA, “For Students...”) MusicUnited.org, an anti-piracy lobby group states four valid arguments against music piracy: “Stealing music is against the law, stealing music betrays the songwriters and recording artists who create it, stealing music stifles the careers of new artists and up-and-coming bands and finally stealing music threatens the livelihood of thousands of working people – from recording engineers to record-store clerks – who are employed in the music industry.” (MusicUnited, “Why You...” par. 18)
Pirates justify their downloading habits for plenty of reasons. One of the main reasons consumers download music is because of the ease and convenience of it, rather than leaving their house to physically purchase a CD they are able to do so from the comfort if their own home. The record companies have adapted this methodology and have started making legal, licensed copies of music available to consumers via internet services such as iTunes, subscription services such as the reformed Napster, video-on-demand, podcasts, and mobile products. (RIAA, “For Students...” par. 5) Instead of potentially getting hit with a costly and emotionally distressful lawsuit consumers are encouraged to purchase the two or three singles which they like. iTunes charges $0.99 for the majority of their songs, which arguably, is very affordable if you have the funds to purchase a computer and use the internet. (Maciak, “Why do People Pirate”, par. 5) Many individuals pirate to attempt to circumvent current DRM technologies which limit the distribution of files they have legally purchased. Buyers feel they should be allowed to transfer files they have purchased onto whatever medium they would like to. Record companies have compromised and recently Apple has announced that it will provide DRM-free songs via its iTunes service providing the record companies approve. (Apple, par. 1)
Artists have begun to harness the power of file sharing and some have realized the opportunity provided by peer to peer networks. Artists such as Kanye West have begun to provide new songs for download, free of charge, available on their blogs. (http://www.kanyeuniversecity.com/blog/) Peer-to-peer services such as Napster provided a venue where relatively unknown or new artists could distribute their songs for free. Musical group Dispatch accredited its success to Napster, attributing its ability to sell out shows and popularity due to the vast spread of its music. (Wikipedia, “Napster”, Par. 10) “The band members were avid supporters of Napster, promoting it at their shows, playing a Napster show around the time of the Congressional hearings, and attending the hearings themselves." (Wikipedia, “Napster”, Par. 10)
The argument of piracy is likely to continue on for a long time, the RIAA itself recognizes the extreme impossibility of permanently stopping piracy from occurring but their goal is to “bring it to a level of manageable control so a legitimate marketplace can really flourish.” (RIAA, “For Students...” par. 13) Until such a level of control is reached it is up to artists and record companies to try and develop new tactics to boost CD sales or other sources of revenue such as concerts. In an article by Kevin Kelly titled Better than Free Mr. Kelly gives eight suggestions to create value to digital products. The following are most relevant in the case of music piracy: Immediacy – which is described as the ability to ship a product to the customer before it is available on peer-to-peer websites. Authenticity – the genuine file should be of highest quality and virus free. Embodiment – live concerts or autograph sessions help consumers feel attached to an artist. Findability – use software such as iTunes to distribute as it is much simpler for the consumer to find and download your product. (Maciak, “Why do you sell data when information is free”, par. 6)
Music Piracy and Artists, Consumers and Record Companies
With the advent of peer to peer programs such as Napster during the late 1990’s which made searching and downloading music as simple as a few clicks on the mouse, music piracy has been at an all time high. According to statistics from RIAA – The Recording Industry Association of America the leading agency in anti-piracy efforts, 1999 represented the peak in the overall size of the U.S. sound recording industry at $145,845,000,000. In all subsequent years the total value declined to reach its latest figure in 2007 of $103,227,000,000. (RIAA, “2007 Consumer Profile”). The RIAA has been working hard to protect the record recording industry and all the artists, songwriters, musicians and record label employees within the industry. (RIAA, “Online and On The Street” par. 1) The RIAA’s main focus is to reduce the widespread ‘music theft’ through illegal uploads and downloads and stop companies which produce counterfeit CDs. (RIAA, “Online...” par. 2) Statistics by the Institute for Policy Innovation conclude that “global music piracy causes $12.5 billion of economic losses every year.” (RIAA, “Online...” par. 3) These losses include loss of jobs; loss in tax revenues and loss in corporate income (RIAA, “Online...” par. 3). Consumers justify their downloading habits by a few points: firstly, they claim that the price of a music CD is unfair in comparison to the quality of the music they are perceived to be receiving. Secondly, consumers are outraged that they must purchase a full CD only to receive a few hit singles and mostly ‘filler’ songs. Finally, consumers also turned to free peer to peer services because limited or otherwise hard to find items were now easily available. Another argument that consumers used was that if they owned the original work in cassette, CD or LP form, they should have the right to own a digital copy which will not physically degrade over time and continuous use. (Wikipedia, “Napster”, par. 3)
Record companies claim they are losing millions of dollars in annual sales of CDs and that piracy has made a huge dent in the pockets of artists. Record companies and artists alike have been trying hard to educate the consumers the harms of pirating music and relate pirating to stealing. (RIAA, “For Students Doing Reports” par. 4) The RIAA breaks down pirating into two main categories: street piracy and online piracy. Street piracy is defined as the manufacturing and sale of counterfeit CDs. Online piracy encompasses all digital file sharing and file swapping. (RIAA, “For Students...” par. 6) As mentioned earlier, the RIAA cites the Institute for Policy Innovation in the statistic that global music piracy costs the economy $12.5 billion dollars in losses. Without record companies and artists receiving proper royalties on their creative works, they are not financially able to continue producing music. Rightly so, music artists deserve to be compensated for their effort and creativity and risk they took in endeavouring into the music industry. While music pirating may seem as a victimless crime it is actually hurting many people. (MusicUnited, “Why You Shouldn’t Do It”, Par. 13) Popular artist and multi-platinum award winning artist DMX says the following on piracy:
"It was a rough road but I made it. I got to where I wanted to be. And, part of being where I want to be is getting paid for my work. But, when you download songs off the Internet it’s stealing. It’s taking away from those 19 years of writing, it’s taking away from those 19 years of struggling. Because straight up and down it’s stealing. My fans, my real fans, they got love for me. [It]’s stopping new artists from getting where they need to be. It’s killing the industry as we know it. Stop stealing. Go in the store and buy like everybody else." (MusicUnited, “What Artists Have To Say”)
Since the past few years the RIAA has resorted to slapping individuals with hefty lawsuits in order to try and deter individuals from illegally pirating music. According to the RIAA the lawsuits are trying to send the message that individuals must be held accountable for their illegal activities. Because illegally downloading music is simple and individuals have largely done it undetected the RIAA has decided to use the Copyright act and the law to try and let pirates know that it isn’t undetectable and they will be held accountable for their actions. (RIAA, “For Students...”) MusicUnited.org, an anti-piracy lobby group states four valid arguments against music piracy: “Stealing music is against the law, stealing music betrays the songwriters and recording artists who create it, stealing music stifles the careers of new artists and up-and-coming bands and finally stealing music threatens the livelihood of thousands of working people – from recording engineers to record-store clerks – who are employed in the music industry.” (MusicUnited, “Why You...” par. 18)
Pirates justify their downloading habits for plenty of reasons. One of the main reasons consumers download music is because of the ease and convenience of it, rather than leaving their house to physically purchase a CD they are able to do so from the comfort if their own home. The record companies have adapted this methodology and have started making legal, licensed copies of music available to consumers via internet services such as iTunes, subscription services such as the reformed Napster, video-on-demand, podcasts, and mobile products. (RIAA, “For Students...” par. 5) Instead of potentially getting hit with a costly and emotionally distressful lawsuit consumers are encouraged to purchase the two or three singles which they like. iTunes charges $0.99 for the majority of their songs, which arguably, is very affordable if you have the funds to purchase a computer and use the internet. (Maciak, “Why do People Pirate”, par. 5) Many individuals pirate to attempt to circumvent current DRM technologies which limit the distribution of files they have legally purchased. Buyers feel they should be allowed to transfer files they have purchased onto whatever medium they would like to. Record companies have compromised and recently Apple has announced that it will provide DRM-free songs via its iTunes service providing the record companies approve. (Apple, par. 1)
Artists have begun to harness the power of file sharing and some have realized the opportunity provided by peer to peer networks. Artists such as Kanye West have begun to provide new songs for download, free of charge, available on their blogs. (http://www.kanyeuniversecity.com/blog/) Peer-to-peer services such as Napster provided a venue where relatively unknown or new artists could distribute their songs for free. Musical group Dispatch accredited its success to Napster, attributing its ability to sell out shows and popularity due to the vast spread of its music. (Wikipedia, “Napster”, Par. 10) “The band members were avid supporters of Napster, promoting it at their shows, playing a Napster show around the time of the Congressional hearings, and attending the hearings themselves." (Wikipedia, “Napster”, Par. 10)
The argument of piracy is likely to continue on for a long time, the RIAA itself recognizes the extreme impossibility of permanently stopping piracy from occurring but their goal is to “bring it to a level of manageable control so a legitimate marketplace can really flourish.” (RIAA, “For Students...” par. 13) Until such a level of control is reached it is up to artists and record companies to try and develop new tactics to boost CD sales or other sources of revenue such as concerts. In an article by Kevin Kelly titled Better than Free Mr. Kelly gives eight suggestions to create value to digital products. The following are most relevant in the case of music piracy: Immediacy – which is described as the ability to ship a product to the customer before it is available on peer-to-peer websites. Authenticity – the genuine file should be of highest quality and virus free. Embodiment – live concerts or autograph sessions help consumers feel attached to an artist. Findability – use software such as iTunes to distribute as it is much simpler for the consumer to find and download your product. (Maciak, “Why do you sell data when information is free”, par. 6)
Works Cited
For Students Doing Reports. Recording Industry Association of America. 4 Feb. 2009 <http://www.riaa.com/faq.php>.
Maciak, Luke G. "Why do you sell data when information is free?" Weblog post. Why do you sell data when information is free? 4 Feb. 2009 <http://www.terminally-incoherent.com/blog/2008/02/13/how-do-you-sell-data-when-information-is-free/>.
Maciak, Luke G. "Why do People Pirate?" Weblog post. Why Do People Pirate? 10 Dec. 2008. 4 Feb. 2009 <http://www.terminally-incoherent.com/blog/2008/12/10/why-do-people-pirate/>.
MusicUnited.org - What Artists and Songwriters Have to Say. Music United. 05 Feb. 2009 <http://www.musicunited.org/3_artists.html>.
MusicUnited.org - Why You Shouldn't Do It. Music United. 05 Feb. 2009 <http://www.musicunited.org/4_shouldntdoit.html>.
Napster. 1 Feb. 2009. Wikipedia. 3 Feb. 2009 <http://en.wikipedia.org/wiki/Napster>.
Online and On The Street. 5 Feb. 2009. Recording Industry Association of America. 5 Feb. 2009 <http://www.riaa.com/physicalpiracy.php>.
2007 Consumer Profile. Rep. The Recording Industry Association of America. 1 Feb. 2009 <http://76.74.24.142/81128FFD-028F-282E-1CE5-FDBF16A46388.pdf>.
"Unveils Higher Quality DRM-Free Music on the iTunes Store." Apple Unveils Higher Quality DRM-Free Music on iTunes Store. Apple. 04 Feb. 2009 <http://www.apple.com/pr/library/2007/04/02itunes.html>.
Weblog post. KanYe West : Blog. 3 Feb. 2009 <http://www.kanyeuniversecity.com/blog/>.